Interparfums Inc. Files Q3 2024 10-Q Report

TL;DR

Interparfums dropped its Q3 2024 10-Q. Check financials.

AI Summary

Interparfums Inc. reported its third-quarter results for the period ending September 30, 2024. The company's financial performance for this quarter and the nine months ended September 30, 2024, is detailed in this 10-Q filing. Specific financial figures and operational highlights are presented within the document.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Interparfums Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-09-30 — Reporting Period End (Third quarter of fiscal year 2024)
• 2024-07-01 — Reporting Period Start (Third quarter of fiscal year 2024)
• 2023-09-30 — Prior Year Period End (Third quarter of fiscal year 2023)

Key Players & Entities

• INTERPARFUMS INC (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241106 (date) — Filing Date
• VanCleefAndArpels (company) — Brand Member
• InterparfumsSA (company) — Subsidiary Member

FAQ

Filing Documents

• ipar-20240930.htm (10-Q) — 1084KB
• ex311_1.htm (EX-31.1) — 13KB
• ex312_2.htm (EX-31.2) — 13KB
• ex321_3.htm (EX-32.1) — 7KB
• ex322_4.htm (EX-32.2) — 8KB
• 0001753926-24-001818.txt ( ) — 4773KB
• ipar-20240930_def.xml (EX-101.DEF) — 104KB
• ipar-20240930_pre.xml (EX-101.PRE) — 281KB
• ipar-20240930_cal.xml (EX-101.CAL) — 72KB
• ipar-20240930_lab.xml (EX-101.LAB) — 408KB
• ipar-20240930.xsd (EX-101.SCH) — 22KB
• ipar-20240930_htm.xml (XML) — 595KB

Financial Statements

Financial Statements 1 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 2 Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2024 and September 30, 2023 3 Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and September 30, 2023 4 Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2024 and September 30, 2023 5 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and September 30, 2023 6 Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 Part II. Other Information 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 24 Item 5. Other Information 24 Item 6. Exhibits. 25

SIGNATURES

SIGNATURES 26 INTERPARFUMS, INC. AND SUBSIDIARIES Part I. Financial Information Item 1.

Financial Statements

Financial Statements In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly our financial position, results of operations and cash flows for the interim periods presented. We have condensed such financial statements in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Therefore, such financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America. In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued by filing with the SEC. These financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2023 , included in our annual report filed on Form 10-K. The results of operations for the nine months ended September 30, 2024 , are not necessarily indicative of the results to be expected for the entire fiscal year. Page 1 INTERPARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data) (Unaudited) ASSETS September 30, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 78,419 $ 88,462 Short-term investments 78,783 94,304 Accounts receivable, net 354,175 247,240 Inventories 412,758 371,859 Receivables, other 4,984 7,012 Other current assets 26,788 29,458 Income taxes receivable 533 691 Total current assets 956,440 839,026 Property, equipment and leasehold improvements, net 166,435 169,222 Right-of-use assets, net 25,471 28,613 Trademarks, licenses and other intangible assets, net 290,864 296,356 Deferred tax assets 19,742 14,545 Other assets 21,648 21,567 Total assets

notes to consolidated financial statements

notes to consolidated financial statements. Page 2 INTERPARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net sales $ 424,629 $ 367,969 $ 1,090,821 $ 988,936 Cost of sales 153,469 132,962 396,519 362,568 Gross margin 271,160 235,007 694,302 626,368 Selling, general and administrative expenses 165,166 147,805 455,506 393,866 Income from operations 105,994 87,202 238,796 232,502 Other expenses (income): Interest expense 1,978 2,397 5,726 7,030 Loss (gain) on foreign currency 3,355 ( 669 ) 3,085 ( 656 ) Interest and investment loss (income) 254 ( 1,062 ) ( 1,690 ) ( 8,421 ) Other loss (income) 1 ( 77 ) ( 35 ) ( 125 ) Nonoperating Income (Expense) 5,588 589 7,086 ( 2,172 ) Income before income taxes 100,406 86,613 231,710 234,674 Income taxes 23,571 20,493 54,974 55,128 Net income 76,835 66,120 176,736 179,546 Less: Net income attributable to the noncontrolling interest 14,576 12,906 36,606 37,312 Net income attributable to Interparfums, Inc. $ 62,259 $ 53,214 $ 140,130 $ 142,234 Earnings per share: Net income attributable to Interparfums, Inc. common shareholders: Basic $ 1.94 $ 1.66 $ 4.37 $ 4.44 Diluted $ 1.93 $ 1.66 $ 4.34 $ 4.42 Weighted average number of shares outstanding: Basic 32,026 31,976 32,030 32,000 Diluted 32,266 32,124 32,266 32,149 Dividends declared per share $ 0.750 $ 0.625 $ 2.250 $ 1.875 See notes to consolidated financial statements. Page 3 INTER PARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Land and Building Acquisition - Headquarters in Paris In April 2021, Interparfums SA, our 72 % owned French Subsidiary, completed the acquisition of its headquarters at 10 rue de Solfrino in the 7 th arrondissement of Paris from the property developer. This is an office complex combining three buildings connected by two inner courtyards, and consists of approximately 40,000 total sq. ft. The purchase price included the complete renovation of the site. As of September 30, 2024 , $ 156 million ( 139 million) of the purchase price, including approximately $ 3 million of acquisition costs, is included in property, equipment and leasehold improvements on the accompanying consolidated balance sheet. The purchase price has been allocated approximately $ 64.1 million ( 57 million) to land and $ 91.9 million ( 82 million) to the building. The building, which was delivered on February 28, 2022, includes the building structure, development of the property, faade waterproofing, general and technical installations and interior fittings that will be depreciated over a range of 7 to 50 years. The Company has elected to depreciate the building cost based on the useful lives of its components. The acquisition was financed by a 10 -year 120 million (approximately $ 134.4 million) bank loan which bears interest at one-month Euribor plus 0.75% . Approximately 80 million of the variable rate debt was swapped for variable interest rate debt with a maximum rate of 2 % per annum. The swap effectively exchanges the variable interest rate to a fixed rate of approximately 1.1 %. 3. Recent Accounting Pronouncements: In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significan

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5. Fair Value Measurement: The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at September 30, 2024 Total Quoted Prices in Active Markets for Identical Assets (Level 1 ) Significant Other Observable Inputs (Level 2 ) Significant Unobservable Inputs (Level 3 ) Assets: Short-term investments $ 78,783 $ 8,940 $ 69,843 $ — Interest rate swaps 2,462 — 2,462 — Foreign currency forward exchange contracts not accounted for using hedge accounting 225 — 225 — $ 81,470 $ 8,940 $ 72,530 $ — Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting 216 — 216 — $ 216 $ — $ 216 $ — Fair Value Measurements at December 31, 2023 Total Quoted Prices in Active Markets for Identical Assets (Level 1 ) Significant Other Observable Inputs (Level 2 ) Significant Unobservable Inputs (Level 3 ) Assets: Short-term investments $ 94,304 $ 12,868 $ 80,614 $ 822 Interest rate swaps 3,909 — 3,909 — Foreign currency forward exchange contracts not accounted for using hedge accounting 359 — 359 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,533 — 1,533 — $ 100,105 $ 12,868 $ 86,415 $ 822 Page 9 INTERPARFUMS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements The carrying amount of cash and cash equivalents, short-term investments including money market funds and marketable equity securities, accounts receivable, other receivables, accounts payable and accrued expenses approximate fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company's indebtedness approximate current market rates. The fair value of the Company's long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value. Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps is the discounted net present value of the swaps using third party quotes from financial institutions. 6. Derivative Financial Instruments: The Company enters into fo reign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Before entering into a derivative transaction for hedging purposes, it is determined that a high degree of initial effectiveness exists between the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates. High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item. The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference which is reported in current period earnings. Any hedge ineffective

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7. Leases: The Com pany leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments. As of September 30, 2024 , the weighted average remaining lease term was 4.2 years and the weighted average discount rate used to determine the operating lease liability was 3 %. Rental expense related to operating leases was $ 1.6 mil

View Full Filing

View this 10-Q filing on SEC EDGAR